greg: he would pull the van in and park over the plates where they access the tanks, drop the hose in. >> reporter: 20 minutes later, off he goes. hey, times are tough, this economy drives you to do crazy things. thanks for joining us everybody. greg: "america live." gretchen: we start with fox news alert on the latest stunning twist in the casey anthony murder trial. just hours after judge belvin perry unexpectantly called an indefinite recess we are now getting word at this moment that court is going to resume just a few minutes away. welcome, everyone, to "america live." i'm gretchen carlson in for amyg began kelly. let's take a listen to the visibly frustrated judge, telling case's defense, get our act together. >> reporter: there are real problems and there are imaginary problems.

and i hope this is a real problem and not an imaginary problem. because i will give you all the time that you need, but if i find out that this is an imaginary problem, because these folks are ready to return to their homes. gretchen: and now we are inching closer to possible jury deliberations and a final verdict in this sensational case. our own phil keating outside the courthouse for us in orlando. how long might this indefinite recess really be? it could be coming to a close. >> reporter: indefinite lasted four hours. we have a live camera inside the courtroom. you can see a sheriff's deputy milling about, and a door entrance where casey anthony charged with first-degree murder

for allegedly killing her daughter caylee will soon walk into the courtroom and we'll resume the state's rebuttal case. what is certain for this jury, this see questioned jury is they'll be spending their second consecutive holiday weekend not hanging out with friends and family but living and breathing the casey anthony murder trial. casey anthony's attorney baez and jeff ashton started depositions a few hours ago. they needed to question a few rebuttal instances. casey anthony told the kroert yesterday during this hour that she will not testify during her own defense. its the testimony of her mother cindy that is said to be critical as we head toward the jury deliberations. she testified on the stand last week that in mid march of 2008 she was not at work but at home googling chloroform and chlorophyll on the anthony home computer. her coworkers are expected to testify in the next few hours

that their work records show cindy anthony was in fact at work during the key times. prosecutors unearthed more am eugammunition about the testimo. >> they did key word searches based on what she provided in her testimony and there is no reference to those terms even in the unallocated deleted fire fox his reor on the entire hard drive. >> reporter: those computer searches are just as critical for the state as is the evidence of the duct tape. because prosecutors say together they prove casey anthony planned out doping caylee to sleep and suffocated her with that duct tape. that gives the prosecution team what they needed, premeditated murder. that's what the first-degree murder charge is for and that's why casey anthony faces the poe ten aldeath penalty if the jury agrees on the first degree murder. i will tell you i spoke with mark lit man last night, the

attorney for cindy anthony and he told us he is now concerned that cindy anthony, the mother of this murdered defendant could now be charged with perjury. we shall see. shortly in the courtroom we will resume testimony with the state's first rebuttal witness being called. casey anthony, however has yet to walk back into the courtroom yet. gretchen: we'll have to find out whether or not the prosecution calls back the mom, cindy anthony in this case. all right. so in just a couple of minutes that trial will be resume, we will bring it to you at that point, but you can catchall the proceedings once they get underway streaming live on foxnews.com. coming up we're going to talk to the anthony family former attorney to find out what is next in the case, and what kind of impact it will have on the family after all of the accusations of lying, infidelity and even sexual abuse. fox news alert because a stunning reversal in the sex assault case tkaeupb against coe

kneeing strauss-kahn her the supposed victim said she cleaned another room right after her contact with strauss-kahn. they are releasing him without bail. prosecutors say they have serious problems with the credibility of the accusor after doing extensive digging into her past. the accusor's lawyers says she may have, quote, made some mistake, but that doesn't mean she is not a rape victim. the charges still stand and have not been reduced but the entire case teeters on collapse. lawmakers failed to meet a budget deadline over how to solve a $5 million budget deficit. thousands of employees are without jobs and pay. road projects are at a standstill and state parks are

padlocked as we head into the july 4th weekend. >> democrats and republicans need to stop acting like crips and bloods, gang members. why don't you go to that table and sit down and break your pride and talk. >> you shut down all of the jobs that are going to be lost right now. how are you going to increase and solve the budget crisis when you're not employing people. how will you going to solve that problem? >> i'm retired and my pension has inch ceased zero percent in the last seven and a half years. 6% quote in the state budget is more than add have it to take care of the needs of the state of minnesota. gretchen: republicans said they tried to pass a lights on bill that would have kept the government working ten days more but that the governor rejected eud. gretchen: timothy geithner says he's not going anywhere, at

least for now. it comes after reports swirled that geithner told the president he was considering stepping down from his powerful post. but he made clear he is staying put. >> i live for this work, it's the only thing i've ever done. i believe in it. i'll be doing it for the foreseeable future. people are interested because, you know, i have a family and my son is going back to new york to finish high school and i'm going to be commuting for a while. but i'm going to be doing this for the foreseeable future. gretchen: he is the last remaining person in president obama's original economic team and is one of the president's most trusted advisers. a brand-new poll painting a very bleak picture of our nation's economy. according to this fox news poll voters overwhelmingly believe the economy basically stinks. some 59% give the economy the lowest rating of poor, an improvement from 74% calling conditions poor the week before

president obama took office. we are getting new reaction to attorney general eric holder's controversial decision to open full scale criminal investigations into the deaths of two detainees in cia custody. critics are calling the investigations unnecessary and politically motivated. catherine herridge live for us from washington. >> reporter: since august 2009 federal prosecutor john durham has been investigating the detention and interrogation program. this is the second such review of that program. he has now investigated the treatment of 101 detainees in u.s. custody and concluded that only two of these cases warrant further criminal investigation. both of these detainees died while in custody, one in iraq and the other in afghanistan. leading analysts say the endless scrutiny and threat of lit gigs that hung over the heads of the cia interrogators could be a risk in the future at a time when they need to taken morris beings because the threat has

become more diversified spreading to al-qaida franchises in yemen, somalia and the homegrown component. >> we want our national security and terrorist professionals not to be looking over their shoulders. i think it has been demoralizing for these folks. >> reporter: in a statement released late last night the acl aorbgs said senior administration officials under the previous administration should have been pursued as well. for a period of several years and with the approval of the bush administrations most serious officials the cia operated an interrogation program that subjected prisoners to unimaginable cruelty. and vie lighted both international and domestic law. their position is they should have put the managers and the

people who signed it under the microscope and none the interrogators. gretchen: we will talk to a legal policy analyst who served in the special forces in afghanistan about the attorney's decision to investigate the cia. he was convicted in the brutal murder of a u.s. border agent and now we are awaiting sentencing for this man, a mexican drug smuggler facing possible life in prison for taking the life of a american. we have the details just ahead. one of the country's most prestigious colleges says the 4th of july is only for republicans and right wingers? really? we'll take a closer look at the controversial study. you won't believe it. [ male announcer ] what is the future of fuel? the debate is over. ♪ lexus hybridrive technology

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nogales. >> how long will it take me to cut this and get me and a few people through this. >> by design the minimum criteria is 15 minutes. but this -- it might take you a couple fence with this. gretchen: it is 18 inches wide, reaches 24 feet high, extends five feet below the ground and is reinforced with a six-foot base. we are awaiting the sentencing

of a mexican man convicted of striking and killing an arizona border patrol agent back in 2008. jesus navarro, an alleged drug smuggler could face a life sentence for the death of border patrol agent luis aguilar. they say he ran him over as he tried to lay spike strips to puncture the tires. trace gallagher has more. >> reporter: this happened near the arizona mexico border, and the agent, luis aguilar thought the hummer he spotted in the desert was loaded with marijuana. he tried to throw down a spike strip to stop the vehicle. instead of going over the spike strip the driver ran over agent aguilar, killing him. jesus navarro was later arrested in mexico. he confessed to the crime but tpwhou says the confession was beaten out of him.

he spent five months in a mexican prison and then was released. that's when the u.s. extradited him, recap paourd him shall brought him back to the united states and had him stand trial. the jury convicted him in less than two hours because there were several witnesses who placed him at the scene of the crime. he was convicted of second-degree murder as well as conspiracy to distribute marijuana. the feds are asking for life in prison. navarro's attorneys say they want 40 years saying he didn't try to kill aguilar, he was trying to avoid the spike strips and accidentally killed the agent. the sentencing could come down any minute now. we are monitoring this. he is in court as we speak. again, this is happening as we speak right now, and aog ahh las the 23rd border patrol agent killed in the line of duty since 1990. when that sentence comes down we'll get it to you as soon as we can.

gretchen: the president continuing his call to slash the skyrocketing deficit but raising taxes on the wealthy as part of that plan. a brand-new poll on what americans think about that. alan colmes coming up on the deficit debate. a very special gift for this military family. we warn you the surprise inside the box may bring you to tears. well, i'm an avid catamaran sailor. i can my own homemade jam, apricot. and i really love my bank's raise your rate cd. i'm sorry, did you say you'd love a pay raise asap ? uh, actually, i said i love my bank's raise your rate cd. you spent eight days lost at sea ? no, uh... you love watching your neighbors watch tv ? at ally, you'll love our new raise your rate 4-year cd that offers two rate increases if our current rates go up. ally bank.

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gretchen: fox news alert out of orlando, florida right now where court is in session for the casey anthony murder trial. just hours ago judge belvin perry called an indefinite recess so that the defense attorneys could take care of some legal matters. court has now resumed finally. the state bringing forward rebuttal witnesses as this case draws closer to deliberations and a final verdict. you're looking at tape here right now. we'll have live pictures for you

coming up. plus, we're going to be talking to the anthony family's former attorney just ahead. getting our fiscal house in order is the hottest debate in d.c. right now. but brand-new numbers show americans are basically split on the issue. democrats say they are willing to accept some spending cuts. president obama made clear this week that he will continue to push for tax increases as part of the deal as well. before according to this fox news poll voters split between the government increasing or reducing taxes on wealthy americans to improve the economy. here now is alan colmes, host of the alan combs show. welcome. this is a drop-deaden split 45-45. >> reporter: i have 19 polls that bartlett put out. he worked for george w. bush, and reagan. they say people are willing to

see increase in taxes on the wealthy. you can go down the lis of polls, almost every american in every poll 19 polls this year americans believe in order to balance the budget we have to move toward getting revenue from the rich. gretchen: increasing taxes. do you believe that is why the president has been so staunch in his position because he's looking at the poll polls you're looking at? >> reporter: not only that. he's already compromised. the sunset was supposed to end at the end of last year, he agreed to keep the bush cuts for the wealthy. that upset some people on the left. this guy has compromised repeatedly. you have republicans walking out of meetings. they walk out of a free trade meeting yesterday. gretchen: that could be looked at like a flip-flop. while he did increase or extend the bush tax cuts then he came out and said, i'm in the in favor of those tax cuts any more. some independents may not like that. >> reporter: he's not going to please everybody. in my view from where i stand

he's compromised over and over again, compromised on healthcare, certainly come proceed milessed on taxes. gretchen: come proceed milessed on healthcare? >> reporter: he wanted a single payer as a state senator, then he wanted a public option. that never happened. he compromised tremendously, you're laughing at me. gretchen: since he's been president i'm not sure he compromised on healthcare. >> reporter: he was advocating the public option which has never happened. you have republicans walking out of meetings, taking their basketball and going home. they are not negotiating in good faith. gretchen: should they have taken their bats and balls and go home after they hear the president talk like this. >> they are in one week, out one week, then they are saying obama has to step in. you need to be here. i've been here. i've been doing afghanistan, and bin laden and the greek crisis and -- you stay here. let's get it done.

gretchen: that was kind of disingenuous, wasn't it? he had played golf two weeks after. >> reporter: he's not supposed to play golf. gretchen: i think the president who has the most stressful job in the world should play golf. however there is something in the messages. that night after he did that he went to two fundraisers. >> reporter: this is going after everything. george bush spent more time at the ranch and at camp david than any other president, nobody says a word. this president plays golf and the right wing goes crazy. gretchen: did bush call out congress. >> reporter: sometimes they have to be. bush had a republican congress for th the large majority of his presidency he didn't have to call them out. gretchen: some say if the president is in a night, the left will give them a lot more room. so attacking them was a good

strategy. >> reporter: are they that easily bruised? how do you call it attacking. gretchen: i wouldn't call it good negotiating on both sides. >> reporter: negotiations have failed. he had to finally say something. republicans had walked out of a meal where they were goesed to negotiate stuff. they didn't want to sit down in the chair and talk. gretchen: alan, you're a married man, i'm a married woman, you know in negotiatings at home you never go anywhere when you start it by picking a fight. >> reporter: i don't know if the congress and the president -- i don't know in that that will be an issue. gretchen: you do know what i mean. >> reporter: i know what you mean. at a certain point even married couples occasionally will say a few harsh words once in a while, it doesn't mean they don't love each other. have you and your husband ever had a harsh word. gretchen: dale leave. but i've learned from it that's why i'm saying maybe this isn't the best task. >> reporter: maybe you have to ruffle a few feathers and you can have some [speaking french]

gretchen: have a great holiday. good to see you. new developments are coming in in the sex assault case against come strauss-kahn. his accusor claiming she lied. attorney general's holder investigation of two detainees. we'll look inch to it next. a call for a look into the department of veteran's affairs after some families were prohibited in using the words god or jesus in funeral services. congressman ted poe joins us live with his fight. >> we are private citizens in a private organization and we are restricted from saying what our ritual calls for. >> how did i feel? i probably should not say how he felt. it was absolutely appalling that this woman would come aboard and

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lipitor is fda approved to reduce the risk of heart attack and stroke in patits who have heart diase or risk factors for heart disease. [ female annncer ] lipitor is not for evyone, including people with liver problems and women who are nursing, pregnant or may become pregnant. you need simple blood tests to check for liver problems. tell your doctor if y are taking other medications or if you have any muscle pain or weakness. this may be a sign of a rare but serious side effect. lets go... haha. if you have high cholesterol, you may be at increased risk of heart attack and stroke. don't kid yourself. talk to your doctor about your risk a about lipitor. gretchen: fox news alert for you right now. take a look at this live picture coming out of orlando, florida. that is casey anthony. the defendant in her murder trial back in the courtroom with her attorney, jose baez. now, remember the judge had put this trial on an indefinite recess because the defense said that they needed to question some of the rebuttal witnesses of the prosecution who were

ready to testify starting yesterday afternoon. the judge warned baez, look no funny games here, make sure you really need to do this. apparently those depositions went quickly this morning, and now court is back in session. rebuttal will start now from the prosecution. after that we will have closing arguments, and this jury will get this case over the holiday weekend. keep it right here. ohio governor john cassack signing his budget before a midnight deadline. it contains broad changes, private tying five state prisons, over hauling medicaid, banning most abortions in public hospitals and tying teachers pay to student achievement. randy macho man savage died from heart disease. they said something went wrong with the wrestler's heart before he crashed his car back in may. good news for general motors the

automaker is reporting a 10% hike compared to a year ago. the numbers show that the auto industry's slow recovery from the recession is back on track after a slump in may. venezuela's president hugo chavez emerging after weeks out of his country and out of the public eye. appearing on tv thinner and pale announcing he underwent surgery in cuba to remove a cancerous tumor and is assuring venezuelans he is still in charge of his country. that is remarkable. he was out of sight for a longtime. >> reporter: this is a man who speaks on television for hours at a time several times a week. it's really startling to see him just give a 13-minute very brief speech there. he also looks about 40 or 50 pounds lighter. keep in mind the source for all information about his health right now is hugo chavez himself

and the cuban government and cuba high school a history of secrecy when it comes to a leader's health. it's hard to tell what is true and not true here. chavez himself says he's had two operations the most recent in cuba for removal of a cancerous tumor. what type of cancer, really uncertain. back in venezuela they say the constitution has not been violated, chavez is on the mend and will return soon. soon is not clear as to what that means. for the u.s. it's important because chavez has been a vocal foe of the u.s. which he calls an evil empire. however they import 10% of their oil so it is a key playing partner. hugo chavez has been a one man show, he rules the country, he controls the oil money the parliament and the media. no telling what could happen on

the streets of caracas where we have seen violence between pro and antichavez people in the past if he is out for a long period of time. gretchen: eric holder launching a criminal investigation into the deaths of two detainees while in cia custody while scrapping a larger wide-spread probe which began two years ago over torture cases. we are going to talk about that. is the headline for you in that eric holder dropped the majority of the cases against the cia, or that he has decided to continue the criminal prosecution potentially of these two deaths? >> well let me start by saying

these are my own and not views of the army. i think the real story is is that the pragmatic considerations have won out in this instance, with 99 of the charges they've gone away, they've been dropped, but with the two serious charges where we've had a detainee death, one in afghanistan and one in iraq, then there will be, moving forward there will be some form of prosecution. i think that the pragmatic reasons for this are pretty clear. number one, you're going to find in any jury in america it's going to be tough to convict on these instances where there wasn't a detainee death. and secondly the interrogators in those cases are going to have a pretty good faith reliance on the legal advice that they received at the time from the white house office of legal con counsel. that would be a pretty good defense for them and a necessity defense that the circumstances warranted it. but we don't have any indication that that was the case. but the pragmatic -- gretchen: you're saying it was good news that eric holder

decided to drop the other charges. the big argument from the right was when you decide to criminal until lee prosecute your agents that work for the cia it pretty much handcuffs their ability to do their job. >> if they acted within the advice of the office of legal counsel they've got a great defense there and i think that the pragmatic concerns won out as i said. moving forward with the two cases that we have, we have clear evidence of detainee abuse where the detainee in afghanistan was khaeupbdz to a a concrete die and basically died from exposure. we have one detainee who died in prison in iraq who may have been beaten to death. it's unclear. the folks that were involved in the inch tier tkpwaeugs and the treatment, they'll have a fair trial, a presumption of innocence, so, you know, the system is going to work, i think. gretchen: it's interesting because some of those enhanced terror tactics they haven't been in practice since 2007 is my understanding when president

bush took those particular controversial techniques, i know there were others, those particular ones he took them off the books, right? >> that's correct. and i think the media steps over this a lot where they make it a break between bush and obama on interrogation when in reality the back slide from waterboarding and the more severe core worse euf interrogation techniques started in three parts, first in 2004 the office of legal counsel withdrew the memoranda, in 2005 they passed the detainee act. in 2006 the supreme court held that not only congress has to authorize commissions but the barebones of the geneva convention applies. gretchen: did eric holder's decision in these cases, do you see any tie in to david petraeus now running the cia? >> no i don't. i think general petraeus has

been pretty clear that he thinks interrogation can work well within the bounds of the army field manual is what he's said in the past. i don't think we'll see anything different from him in the future. gretchen: thank you for your thoughts. have a great independence day weekend. >> thanks you too. gretchen: casey anthony back in the courtroom. her murder trial resuming after the judge unexpectantly called an indefinite recess. it just started. we are looking at live pictures. as you can see there is a witness who is taking the oath, and we're going to listen in now. john camperlengo. stkpwhr-frpblgtsz you may proceed. >> you may proceed. >> i am the chief council of

jent, ivo, the largest hospice company in the united states. >> where is your office located. >> atlanta, georgia is where our office is located. we have 500 offices throughout the united states, including florida. >> what are your responsibilities as general counsel and you said chief compliance officer? >> that's correct. generally i am responsible for the legal affairs of the company, insuring regulatory requirements are met, rules and regulations are filed. we are a heavily regulated company. we provide our medicare services, and there is a lot of regulation in there. we are a publicly traded company. there are a lot of regulations there. i deal with the board of directors of our company on a regular basis. just general legal affairs of the company. >> as chief compliance officer is it these regulations, federal regulations that you're referring to that you are

responsible for insuring that jentiva complies with. >> yes, ma'am, there are numerous regulations. any healthcare provider has to follow these, immediate ral and medicare regulations, correct. and as chief compliance officer i'm responsible for that. >> does gentiva have either policies or regulations that govern the retention of any sort of information or documentation? >> yes, we have a regular retention policy. most of our documents are patient files, and those are collected and maintained at the branch, sent off to an off-site location through a third party vendor, as well as electronic records are subject to those and we maintain those in our electronic database sis with an outside vendor as well.

>> are there certain regulations that require you to keep, for example, email for a specified period of time? >> there is a company policy. i'm not aware of a federal regulation that requires us, but there's company policy that we maintain those for a period of time. a patient record for example under medicare regulations has a ten year retention requirement. >> are those documents maintained in a specific location or under specified circumstances? >> the documents are maintained, the electronic documents, emails and things of that nature are maintained in our kansas location. that's located in ove overland , kansas. there is a separate security officer who is responsible for that maintenance of those records, yes, ma'am. >> does gentiva have one server that would provide service to all of the locations either on

the eastern seaboard or throughout the country? >> there are likely to be several servers for email but the clinical retention -- clinical management system that we have is maintained in kansas. it's an as400 and it's located in overland park, kansas. >> is that kept in the time zone in which the server, or the maintenance location exists? >> it is maintained on a central standard time zone so any records that are electronically time stamped will have a one hour behind eastern time and two hours ahead of pacific time. it's maintained on central standard time. >> as a result of company policy, or any applicable federal regular lace does gentiva in the regular course of business come file data such as

emails received by employees? >> yes, ma'am, that's correct. >> how about emails deleted by employees? >> yes. when the emails are placed on the server, even if they are deleted they are retrievable, we have a script within our organization, this is not a manual process other than entering the date range if you wanted to retrieve any of these. the script is already set and it retrieves and pulls them back, whether they are deleted or not. >> and that would also include then emails sent by employees as well. >> absolutely, of course, yes, i'm sorry. gretchen: you've been listening to the first rebuttal witness in the casey anthony murder trial. this is an executive with gentiva health services. he is the boss ostensibly of cindy anthony or affiliated with the same company, the grandmother in this case. this has to do with whether or

not cindy was actually searching for the words chlorophyll or chloroform rather than her daughter casey central to this case. we'll continue to follow it right after a short break. ♪ ♪ ♪ [ male annouer ] with amazing innovation,

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medicare supplement insurance plan... insured by unitedhealthcare insurance company. call this toll-free number on your screen now... for this free information kit, including this... medicare guide and customized rate quote. gretchen: fox news alert because the casey anthony trial has resumed down in orlando, florida. the first rebuttal witness, there he is right there. he works at gentiva the company where cindy anthony the grandmother in this case works. this is the first rebuttal witness for the prosecution. let's talk to brad conway a former anthony family attorney, because i'm interested in your thoughts, brad, about where this rebuttal will go now. how does it work for the rebuttal? >> rebuttal is where the state has a chance to contradict what the defense put into evidence, gretchen. gretchen: all right, so you would expect it to go on for a day or so? >> well, they are estimating a day to two days. i think after today's unexpected

recess probably we're looking at going through day, through tomorrow and then i'm not sure what the judge is going to want to do on sunday. gretchen: we are looking at flashess right now. unfortunately there are weather conditions down in florida. we keep losing our satellite there unfortunately. part of what the prosecution is trying to do right now is disprove something that the grandmother in this case, cindy anthony, your former client, something that she said earlier in the trial, which is that she in fact was the one who did the searches on the computer for chloroform which the prosecution alleges that casey did and that's how she killed her baby daughter. so will cindy anthony become a hostile witness now? tell me how they are going to handle this? >> well, what they are doing is they are using this witness to establish whether or not these timecards are accurate or in accurate. and of course cindy anthony testifies, that he was at work during a certain time.

the computer searches were done during a certain time. this witness will establish whether these timecards are set in stone, or whether there is some leeway. gretchen: will the prosecution then be able to prove that cindy anthony potentially purchase injured herself? >> that is going to be a tough question, gretchen. and if they can lock that in i think that decision will depend a lot on the verdict in this case. if casey anthony walks away from it, it will be a decision that the state has got to make and got to take seriously. if casey anthony does not walk away from this probably they are going to just let things stay where they are. gretchen: brad, you know the family, would cindy anthony lie to save her daughter's life? >> i don't believe so, gretchen. she's been very consistent all along. i'm sorry i'm losing you on my ip. she's been consistent all throughout, and the issue of

these timecards is of course going to be the critical determining factor, and this is the first time it's ever come up, gretchen. gretchen: it's a very interesting development. we will continue to watch to see how the prosecution heeds with this. brad conway former anthony family attorney. thanks for your time today. >> oh, you're welcome, gretchen. gretchen: one of the country's most prestigious colleges, you know what they have said now? they have said that the 4th of july is only for republicans and right wingers. really? we'll take a closer look at the controversial study. i thought patriotism included everyone. [music playing] ♪ [ male announcer ] and just like that, it's here.

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gretchen: brand-new developments in america's election headquarters as another republican jumps into the presidential race. thaddeus mccotter will kickoff ace campaign tomorrow. a website for his campaign is up and running. on it he says, quote, your american dream is in danger. he's also known for playing guitar in a rock band. a controversial new study getting a lot of attention today. harvard university is claiming that new research shows celebrating the 4th of july is only for republicans and right wingers, and get this. it helps create future generations of them. trace gallagher live in los angeles. you know when i celebrate independence day i really don't think about politics, trace. >> reporter: wait until i tell you how they came to their conclusions, gretchen. you'll love this. this is by two harvard

professors. after extensive research they came to the conclusion that 4th of july parades do not help democrats, they only help republicans. apparently the reason they help republicans is because they energize them, they turn more kids into republicans, and they boost gop turn out on election day. here is a quote from the study, i want to read this. it says, the political right has been more successful a appropriating american patriotism and its symbols during the 20th century. survey evidence also con tpeurps that republicans consider themselves more patriotic than democrats. the conclusions of the study are as follows, read along with me, attending 4th of july parades before the age of 18 increases the likelihood of identifying as a republican, up 2%, voting for republicans up 4%. boosting voter turn out, up 1%, and increasing gop campaign contributions up 3%. here is the capper.

you want to know how they got to this? what they did is they've used historic rain today the a you know, precipitation, and they've looked at places where it rains a lot and the 4th of july parade is likely to be canceled, and guess what? there were fewer republicans where the parade was canceled. places where it doesn't rain as much, more republicans. you getting the theme here? seattle, oregon, you have a lot of rain, a lot of liberals. arizona not as much rain, little more conservative. gretchen: i hope ahh those parents were paying a bunch of money for their kids to go to harvard didn't contribute to that study, their money i mean. any way it seems crazy. good to see you, trace, see you in a bit. they were prohibited from using the words god or jesus in funeral services. now a group of veterans' families are suing and a member of congress is joining their fight. congressman ted poe joins me moments away.

it's a must-see video of the day. these kids are about to get a very big and unexpected surprise, we warn you, what is inside this box may bring you to tears in a good way this holiday weekend. phillips' caplet use gnesium, an ingredient that works more naturally wityour colon than stimulant xatives, for fective reli of constipation without cramps. thanks. [ professor ] good morning students. today, we're gonna...

gretchen: a fox news alert. the sexual assault case again the former head of the international monetary fund may be collapsing. i'm gretchen carlson in for megyn kelly. dominique strauss-kahn was accused of attacking a chamber maid in a new york city hotel. not you accuser is admitting she lied to a grand jury about exactly what happened. laura ingle is live in new york city with this blockbuster case. what can you tell us? >> reporter: a dramatic turn of events after new information about dominique strauss-kahn's accuser was made public.

prosecutors telling a judge they did an extensive background check on the hotel maid and now there are questions about her credibility and the evidence in this case. they released strauss-kahn from his house arrest and electronic monitoring. he still does not have his passport, but he's allowed to travel weren't u.s. for now. prosecutors believe the accuser lied about herb activities around the time of the assault and about her background. >> we believed from the beginning that this case was not wait appeared to be, and we are absolutely convinced that while today is a first giant step in the right direction. the next step will lead to a complete dismissal of the

charges. report report attorney for the accuser spoke shortly after strauss-kahn walked out of court and admits his client did make mistakes. but it's still a victim. her attorney clearly disturbed by the turn of events and gave a very graphic description of what she says happened on the night in question. she says she will not go quiet quietly. >> she is not going to remain in hiding. she is going to come before you all and she is going to tell you what dominique strauss-kahn did to her and she'll tell you what the possible curer toes in this d what the prosecutors in this office did to her. >> reporter: the prosecutor said the charges are not reduced or dismissed. they will continue to investigate as they wade through these waters. gretchen: this whole thing began more than a month ago. may 14, wet alleged attack took

place near times square. he was indicted by a grand jury. may 23, dna samples came back as a positive match with strauss-kahn. june 6 he pled not guilty and was placed unhouse arrest in an apartment in manhattan. the international monetary fund wasted little time replacing strauss-kahn. thanother fox news alert. a raging wildfire near america's premiere nuclear weapons lab is the largest in u.s. history. so far nearly 104,000 acres scorched. the fire only 4% contained.

roughly 1,200 firefighters are on the front lines battling these flames and dan strin -- dn springer is live. >> it's -- the latest air samples good news. no signs of contamination. we had strong winds yesterday that pushed the fire further away from the area where we are. and into much less populated areas. over 103,000 acres making it the largest ever in new mexico. but containment around the lab held and now the fire chief says there is a 1% chance it will be affects. winds are lighter now giving the firefighters much better conditions. the lab remains as closed and 12,000 residents are still being kept from their home. the big reason now, all the smoke. they might be allowed to return sunday in time for the 4th of

jill holiday monday. state law does not allow the governor to ban the sale or use of fireworks so governor martinez is begging rest didn't to refrain. >> we are concerned you have got dry pine needles on the rooftop and you will have a fire out in the community, not out in the fort. that's why we are urging people do not buy them, do not use them. go to the big public events. >> reporter: a handful of retailers are helping out the governor and all the officials who want to see no fire works in this state. about it latest is the winds pushing this fire first away from the lab, it looks like they will be out of the woods here. gretchen: thanks, much. a blame game going on in minnesota over the state government's shutdown after lawmakers failed to reach a budget deal. the shutdown forcing thousands of layoffs, and most importantly

for a holiday weekend, closing state parks. mike tobin is live with this unfolding story. >> reporter: there is not much getting done in minnesota today. the road projects are stopped. 23,000 state employees are looking at the future of no paychecks. campers out for the busiest weekend at the minnesota state parks. we are told, pull up the tent stakes, park is closed. state employees are told, take home their plants if they need water, this could be a little while. republicans and democrats a half billion apart and absolutely opposed. the governor was elected on increasing the burned on the wealthiest minnesotans. >> the past six months i proposed raising tax ts on only the wealthiest 2% of all

minnesotans. the republicans have adamantly opposed this. >> reporter: republicans had been lobbying for an extension that would get them past this shutdown deadline. if you are driving through minnesota and you come upon a highway rest stop, keep on going. the rest stop is closed. gretchen: the judge put the trial on recess indefinitely. well, apparently it was that indefinite because back on the stand in the casey anthony trial, we'll go back there next. plus a chilling mystery under investigation at a public pool. how a woman last seen swimming with friend wound up dead in the deep end and why nobody noticed for two days. in a public cemetery asking mourners to refrain from using the words "jesus" and "god." the lawyer calling for an investigation joins me next. >> how did i feel? it was absolutely appalling this

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gretchen: earlier this week we told but a group of veterans families suing the veterans national cemetery claiming the department of veterans affairs wouldn't alloy them to say "god" or "jesus." >> rewrite a personal note that we present to the widow, son, daughter, whoever is receiving. this is a condolence card. then we talk to them for just a few minutes. i shouldn't say even a few minutes. about 30 seconds. at that time we usually say god bless you and god bless your family. gretchen: one washington lawmaker is calling for an investigation. republican congressman ted poe.

how did you find out that possibly that woman, marilyn koepp, and other volunteer groups who go out to these funerals, sometimes 50-60 a week and console these grieving families. how did you find out they could no longer stay "god bless you"? >> i had the local commander of the veterans of foreign wars come to talk to me in my office. he had tears in his eyes talking about how when they try to honor our war dead at the cemetery in houston, the prayers are sensors by the director. yo can't say good bliss. the bible has been removed. the cross has been removed by the director and on and on it goes. it's a hostility by the director of the cemetery against religion. and requires her to agree to whatever takes place at the burial site. so i found out from the veterans

themselves. gretchen: you, i know, were outraged. you say it's ridge discrimination. you say it's a violation of these people's first amendment rights. >> no question about it. i was mad about this whole concept. in our second largest veterans cemetery in the united states. veterans to went all off the world to fight for our constitution, the first amendment, the bill of rights. now we have a local person that events the preexercise of religion as the their burial. and yes, i was mad and a lot of people are mad about this. gretchen: in talking to marilyn koepp, she said she has to adjust to now say "peace be with your family" instead of "god bless you." is that the same thing to you? >> no, it's am not the same thing. the cemetery officials are trying to remove the consents of

religion at a ridge ceremony. they were chastised for trying to say god bless you in a note that they write to the family. it's none of the director's business or the federal government's business that these ladies write god bless you to the families. it's censorship, this has to stop and the director has to be removed. gretchen: let me tell you what the statement is from the veterans affairs press secretary. invoking the name of god or jesus is not tomorrow allowed, it's many common at v.a. national cemeteries. however, v.a.'s policy is v.a. sponsored honor guards should not make recitations unless requested to do so by the deceased survivors. so if i'm reading that correctly, i guess these volunteer women and men consoling the grieving families would have to approach them first and say by the way, can i

say "god" or "jesus" to you? >> what a silly regulation. it's prior censorship. of course, these ceremonies, the vfw have been doing these for years. they go back to korea or vietnam or world war ii. the director of the v.a. should have no say so about what takes place at a religious ceremony than should not have any say over what is said. marilyn lights's listen to marilyn koepp. i interviewed her a few days ago. here is how she is thinking through it when she is out there. >> in the cards i have opted to say "peace be with you" and "peace be with your family." but when we get out to the funeral and they arrive with clergy, i think it's pretty safe to say that we can say god bless

you. gretchen: she was saying if they come with clergy, this is such a sensitive time, they are burying a lovered one. i think it's sorts of inappropriate to think that you are going to approach somebody and have a discussion about first amendment rights. >> that many correct. here at the local cemetery, the director has demanded she see all of the prayers that are going to be recited at the gravesite so that there can be of course prior censorship of government at this religious ceremony. the whole process needs to change. and there has to be rather than taken anti-religious and anti-veteran atmosphere at these burials, to change the course, and i think that's something the va needs to look into and deal with immediately. gretchen: you are demarnldsing answers and asking for the removal of this director. but what response with you received? >> i haven't received a response yet. i sent the correspondence immediately after i met with the

vfw locally. i'll give them a few more days. to respond because we had a detail sort of like the declaration of independence. weep listed the accusations against the director and hoped washington, d.c. will respond in writing as to what they are going to do about it. gretchen: keep cuss abreast. appreciate four time. have a great holiday weekend. coming upon the show, mothers in lawer in short of advice for their future daughters-in-law. well, one woman's advice for the bride-to-be is so nasty it has gone viral. plus a college student missing for a month. the warning her mother has for whoever may be responsible for her disappearance. new developments where a woman's body went unnoticed for two days at a public swimming pool. the chilling details why so many

people even inspectors never noticed. >> there is no way her body has been in there for two days. >> as disturbing as it is to think about being in the pool, there are no significant health risks associated with that.

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gretchen: a new plea for help from the parent after missing indiana student. they ask for any new information that might help them find out what happened to their 21-year-old daughter. they are from new york but they will continue to remain in indiana where they continue to hold out hope and search for fresh leads. >> if you think that our determination is any less, it's not.

yesterday robbie was checking his voicemail. and he had on the speaker phone. and even though i wasn't in the room with him, it was clear it was lauren. hi, dad, it's me. i just want to say hi, lauren, it's mom. we love you. we are going nowhere. we are here for you. we just want you to come home. gretchen: lauren was last seen in early june after a night out with her friend. more questions surrounding a pool in fall river, massachusetts, where a woman's body went unnoticed for more than two days. the city's mayor saying the state-run pool hadn't been expected in about a year and it permit expired last year.

more than 48 hours she was last seen swimming with a group of friends. but still how can so many people, swimmers, lifeguards and two health inspectors failed to spot her body? trace gallagher here with more on this bizarre story. >> reporter: we are talking about a 36-year-old haitian immigrant. she went to that public pool with a group of people. apparently she slid down the slide. the pool is 12 feet deep. a 9-year-old bay says he slid down behind her and watched her go under. he went and talked to a lifeguard and the boy says the lifeguard ignored him. we are talking about a pool filled with people and surrounded by lifeguards. then later on in the afternoon when the group the woman went with went home, she was with them. they thought, she must have gone home early.

two days later inspectors drive by the pool. they found it has an expired permit so they check it out. they look at the water. it's cloudy. they note the water is cloudy. that many all they do. they do not notice the body at the bottom of the pool. finally two days later her body begins to float to the top. that many when they discovered her. here is some reaction to that. >> when i heard about it, i thought, what? there is no way that a body has been in there for two days. >> reporter: can you imagine authorities investigating this thing. they have suspended the pool inspectors. they demanded every other public pool in the city be fully inspected to make sure it's okay. and they are looking for answers from lifeguards, those who were at the pool as to why this woman's body was down there for more than two days. and wondering why the lifeguard initially did not help the 9-year-old boy, if the

9-year-old boy's story is accurate. it's unbelievable. gretchen: that could be criminal. maybe they could have saved her life right then and there. unbelievable story. thank you for bringing that to our attention. jaw-dropping developments in sexual assault case against dominique strauss-kahn. what the maid as admitted. our power panel take it up. 40 years ago he walked on the moon. but now the space agency is suing this former astronaut. what nasa says he took home from the moon that didn't belong to him. if you thought your mother in laugh was bad. wait until you hear what one woman said to her future daughter-in-law that set off a storm of controversy.

gretchen: the sexual assault case against the former head of the international monetary fund collapsing right before our eyes. the accuser is admitting she lied to a grand jury about exactly what happened that night and strauss-kahn has been released on his own recognizan recognizance.

we have a district attorney, a social commentator, and the author of "the single girl's guide." every one thought this case may be pretty easy for the prosecution. they had dna that there was a sexual encounter. then the prosecution came forward and said we don't know if we trust our witness. >> that part. our role. it's to get to the truth and seeking justice which is clearly what the manhattan d.a.'s office is doing. they went right to the defense with it. and now we know there is no longer bail for the former imf chief. but there is still a big question. they have credibility problems. we don't know what happened. it may well be that she was raped. but because of all these other things they are finding out, money laundering, associating with drug dealers and

credibility with thing she has said. talking about the next day getting benefits for this testimony. they don't know if they can rely on her. gretchen: what just came out the last hour was she lied to the grand jury. originally she said she went right to her supervisor. now apparently she went to clean another hotel room. >> we tails, details. she went here, she went there. the thing i did pick up about this girl is she is an asylum applicant and she has been through quite a lot in terms of her experiences. some of the inconsistencies in her story may come as a result of having been threw hardships in life and having to lie about it. she said we don't really know what happened. at the end of the day the dna shows there was a consensual encounter. gretchen: he says it was

consensual. what does this to do to the impression or the way in which the american people or anyone looks at rape allegations? >> i think some women may be more reluctant to come forward. the ramifications not just in new york, but in france and back to d.c. the new york it's embarrassing for nypd and the prosecutor. they cape out and said straight up that she was compelling and unwavering. this man might have run for president. the french socialists have to decide if they change their he select schedule. those french newspapers will be saying a lot about america. gretchen: they are also saying a lot about michele bachmann. but here we go again it's like a broken record when we see women in politic that they seem to get

annihilated. she has made a couple little flaws. but do you think because she is a woman she is attacked more than if she is a man. >> absolutely. why is there a palinnization of bachmann? because she is a woman. they are two distint people with different backgrounds. it will remain to be seen whether she'll have what it takes to become the next president and the candidate. but i won't hold it against her if she flubs which john wayne came from a particular town. people have to look at her but i think because she is a woman she is getting a lot of the attacks. her views you can side with her or against her. but that's not what's happening here. gretchen: hillary clinton also faced the same examination in the media when thee tried to

runner to president. >> i think men and women are inherently different. we are constituted differently and it's okay. we don't have to be regarded as the same in order to celebrate our differences. but the point of sarah palin, in ways her similar. they both have five kids, they are in support of antiabortion. regardless of rape, incest. gretchen: what does that have to do with the press being so critical of her. >> i don't think it's fair to say the press in general is critical. i think they called her the darling before anything else. gretchen: you come from a country where you had a female leader in margaret thatcher so you might have a different perspective. >> she handbagged her way through. what happened here is extraordinary. on some levels america may be more sexist than the u.k.

would a man with two law degrees and three terms in congress, would he have been called a fake? i'm not sure. >> romney gets called a flip-flopper all the time. gretchen: i can hardly wait to see what you think about this. in your country, so apparently she had a problem with the woman who is going to marry her stepson and she wrote her an email. now it's gone viral. she said if you want to be to be accepted i suggest you take some guidance from experts with utmost haste. there are plenty of finishing schools around. yikes. >> if she is hypocritical, this step man zer-in-law.

what i will say is there was one point in that email that i thought was valid. the daughter-in-law to be never wrote a thank you note. gretchen: how about this one. she also said no one gets mayor rid in a castle unless they own it. it is brash. celebrity style behavior. just because she want to get married in a castle. >> she remind me of one of my aunts. i think it's silly. it's ironic. she is writing this email about etiquette and there is such a thing about netiquette. gretchen: some of these sell for

$12,000 and apparently young women who want a maternal sort of feeling. older women with empty nest syndrome. those two babies look identical to her real children who are now groifn and she walk around with them. >> there is an incredible creep factor. you want a doll check? put them in your room. but she is taking care of them, she is feeding them and clothing them. it's so bizarre and strange here. i think with the fake babies she is being a fake mommy that might need real psychological help here. >> before a lot of aging use odd happen on our own bodies. now this is taking it to the extreme. now it's like it's coming out he can terminally and people refusing to celebrate the joy that comes with mature, getting older, being a woman.

>> are we los losing our mind. there i a web site called save the children. go there, sponsor a child for $12,000. many children for that money in developing nations and also here in america. i went on the web site today. i put a link on my web site. go there. don't waste your money on dolls. gretchen: it is a little crazy. what a great panel. so great to see you. coming up, they thought their dad with us away on duty. actually he was all wrapped up like a present. we are going to talk to a military family about their huge surprise. >> what's in there?

gretchen: stunning new testimony in the casey anthony trial. cindy anthony's employer

testifying cindy's work computer record show she was logged on at the time she testified she was at home searching for the word chloroform on her home computer. you guys got it all covered there. good to see you both. tom, let me start with you. pretty damaging for the defense, right? >> devastating. the question is why didn't jose baez subpoena send imrecord himself in advance of trial before he decided to question cindy and try and put this testimony that seems to deflect the motive and cause of death that the prosecution was going with from this client. it's just an absolute disastrous misstep by a defense attorney and the defense team appears to have not done its homework.

gretchen: i think anyone in the field of law would see this is a major mistake for the defense. >> i do, but there is an amazing war story. i was in a trial and my client's wife testified and they impeached her with a time card that she was at work. i called the owner and said they punched her in because they had no vacation policy. you be lob this stuff. it could be "a" somebody else logged onto her computer. it's always the same tired excuses. but having said that i agree with my good friend tom who i respect quite a bit. it probably does hurt. >> reporter: if you put on your prosecution hat for a minute, if you are the prosecutor, * going to call cindy anthony back or are you going to leave it? >> the damage is done. you just eviscerated this story. not only have you blown a hole

through the swimming pool theory that baez proffered. he did nothing to support that theory in the evidence of put on. now you have taken apart the whole chloroform story that cindy anthony tried to put out there. you show during the jury during summation, this is a defense team that is desperate. using the shotgun approach trying to bring down her whole family to try to save the client. why? because they know she is guilty. they know she killed her daughter. >> what if the jury now thick that cindy anthony in general is discredited in all of her other testimony. does that hurt the prosecution case? >> i think it does. i said recently. to the extent that a prosecutor is supposed to keep the presentation clear. and the defense is posed some mud why it up and make it confusing. there is lots of confusion. coupled with the fact that for whatever reason, i think everybody agrees, that she

didn't in a pre-med kateed fashion kill the child. i think you are looking at some kind of split compromise decision here. >> thank you interesting. thanks for your immediate insights as we continue to watch the live pictures coming out of florida of the casey anthony murder trial. coming up next, a special gift for this military family. if you have tissue in our house you have got to get them. the surprise inside that green box right there -- i guarantee you you will well up. [ whistle ] ♪ [ cat meows ] ♪ [ ting! ] [ male announcer ] travelers can help you protect the things you care about and save money with multi-policy discounts. are you getting the coverage you need and the discounts you deserve? for an agent or quote,

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gretchen: a major surprise for two children who thought their air force father was away on duty. but guess what, he popped out of a box on a secret visit home.

watch this -- you've got to unwrap it. >> what? you've got to open it up. >> good job, kate. pick it up. what's in there? >> dad! gretchen: i'm a mom, too.

staff sergeant jeremy halson and their kids, they join me now vi sarks skype. i'm so emotional from seeing that video. how wonderful for your family to be reunited. what a fantastic idea. who came up with this wonderful surprise idea? >> that was my idea. gretchen: christina you get an "a" for the rest of the year. is it true you did not want to be surprised by hour husband coming home but you wanted to surprise your kids? >> yes. that's what i used against him to make sure that he told me when he was coming home. rather than trying to surprise all of us himself. is told him i wanted to plan something bigger for the kids. gretchen: so you were away two months. and you were in italy work on the whole situation in libya for u.s. forces. did you want to go along with this idea right away?

>> not at first because she wanted to do it at a restaurant. that was a little too public for me. me coming home a day later paid off for me because it was less embarrassing to me. gretchen: audrey and logan i snow you are 6 and 5 years old. you must have really missed your daddy. >> yes. i missed him a lot. that's why i cried. gretchen: i don't even know him and i'm crying, too. when you are looking at the box and logan, too, what did you think was inside of it? >> i thought it was two big dollies. one is a logan dolly and a audrey dolly. i used to have a big huge barbie one. gretchen: but it had a grill on the outside of the box. logan, did you think it was a grill to barbeque? >> no.

i knew it was daddy. gretchen: you knew of it was daddy? audrey and logan, what did you feel when your dad's head popped out of that box. >> i felt -- i thought it was a big spikey ball. instead of -- and i was really happy. i bald my eyes out. we do these interviews all the time. and we do these interviews and this video never gets old. the idea idea of missing four children for that long. what did you feel in anticipation sitting in that box? >> i was different was pretty nice. i was just hoping they would really miss me. audrey warned me she would cry. but there is always that thing

where, oh, you are home. butch it was perfect. it was the best thing. gretchen: christina were you doing the videotape? >> yes, that's my voice. gretchen: how did you keep your composure. you had seen your husband since he had been away and you put him in the box. but now did you keep your composure. >> i had sunglasses on so that helped. then laughing. the nervous laugh. in the background. and plus my friend -- my great awesome friend helping me, amy and david, amy started crying. i started giggling at her. and that waist just helped kind of lighten the mood for me so i didn't get too emotional. gretchen: i just what to add. this has gone viral. here is one of the quotes. just enjoy the precious moments in this video.

appreciate the unconditional love. this is a beautiful moment. how do you react to that, sergeant? >> it's nice people feel that way about it, you know. it was special for me. and people thought it was special and got emotional over it. that's really awesome. gretchen: audrey and logan how psyched are you your dad doesn't have to go anywhere sometime soon. >> we don't know what psyched means. gretchen: how happy are you? >> too happy. gretchen: your mom and dad will tell you what psyched means in a moment. >> so, so, so happy. happiest of all. gretchen: you certainly have a lot of personality. happy family time, especially as we celebrate independence day here in america. and where you are over in germany as well. thank you for your service.

>> thank you. gretchen: what a great story. a 40-year-old beef from out of this world coming to a head. the government suing the american astronaut who is the 6th man to walk on the moon. we'll find out why next. @

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@@@ every day you live with the pain of moderate to severe rheumatoid arthritis could be another day you're living with joint damage. help stop the damage before it stops you by asking your rheumatologist about humira. for many adult patients with moderate to severe rheumatoid arthritis humira has been proven to help relieve pain and stop joint damage. humira's use in patients with ra has been evaluated in multiple studies during the past 14 years. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal events can occur such as, infections, lymphoma or other types of cancer, blood, liver and nervous system problems, serious allergic reactions, and new or worsening heart failure. before starting humira, your doctor should test you for tb. ask your doctor if you live or have been to a region

where certain fungal infections are common. tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. you should not start humira if you have any kind of infection. make today the day you talk to your rheumatologist. and ask how you can defend against and help stop further joint damage with humira. >>megyn: the government is suing the 6th man to walk on the moon. what's up? >>trace: this was back in 1971. he brought souvenirs with him from the space trip grabbing a dozen space momentoes, and, now, one was a camera, and he took a bunch of pictures including of

fellow astronaut shepherd looking at space rocks. he is 80. strapped for cash. and he wants to sell the camera. and they believe it could get him up to $80,000 but the federal government says "no, no," they want it back. nasa, the government, is now suing him saying and i quote, "the defendant is a former nasa employee who is exercising improper dominion and control over a nasa data acquisition camera," and critics should remember the employee walked on the moon back in 1971 and that he left that camera, if he did so, in the modulate, they would blow it up because that is what they do, by the way, a former astronaut said he had to give his stuff back to nasa, but, many other astronauts have kept their space goodies for the future. we will see if the government or mitchell wins this case over the